On June 12, 2017, Judge Gorsuch issued his first written opinion since taking the bench on the Supreme Court. In Henson vs. Santander Consumer USA, the Supreme Court ruled unanimously that a company that purchases defaulted loans and then attempts to collect on those loans is not a “debt collector” under the FDCPA because the company […]

No Texas Court has considered whether a written offer to enter into a loan modification satisfies the requirement under Texas law—known as the statute of frauds—that all loan agreements over $50,000 must be in writing and signed by the party to be bound. However, the Fifth Circuit’s June 5, 2017 opinion in Owens v. Specialized […]

The Fifth Circuit recently confirmed that lenders and/or servicers cannot raise the statute of limitations as a defense where borrowers claim that a home equity loan fails to comply with the Texas Constitution. In Ocwen Loan Servicing v. Robert M. Berry, the Fifth Circuit vacated and remanded a summary judgment granted in favor of Ocwen […]

In the summer of 2016, Builders Bank of Chicago, Illinois was informed that its Camels rating—a risk-profile metric assigned by banking regulators—had reached a 4. This is the threshold at which a financial institution is considered a “problem bank” by regulators and has a significant impact on the insurance premium paid by the financial institution. […]

“First-in-the-nation” regulations issued by the New York Department of Financial Services (“NYDFS”) which require that financial services companies implement cybersecurity programs are effective March 1, 2017 and will phase in over a period of two years. The NYDFS regulations specifically apply to financial services firms that operate under a license, registration, charter, certificate, permit, accreditation […]

This blog previously addressed the Consumer Financial Protection Bureau’s (“CFPB”) complaints database. Each week the CFPB receives and publishes thousands of consumer complaints about financial products and services. But what if financial services companies included nondisparagement or similar language in their consumer loan documents prohibiting CFPB complaints or negative online reviews? This sort of language […]

Executive summary Federal regulators have issued an advance notice of new proposed cybersecurity standards. The notice invites comment on enhanced cybersecurity standards for regulated entities with total assets of $50 billion and certain of their service providers. The potential new standards don’t apply (yet) to regional or community banks. But those banks should consider implementing […]

Lots of people and companies buy old debt—for example, hedge funds, private equity firms, and even some commercial bank affiliates. Typically, this is debt that the original creditor has charged off and sold for a fraction of the legal balance. In some cases, the debt has grown so old that a statute of limitations makes […]

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The materials available on all KRCL blogs are for informational purposes only and are not intended to serve as legal advice. You should contact a qualified attorney to obtain advice or counsel for your specific situation or issue. Use of and access to any KRCL blog does not create an attorney-client relationship between KRCL and the reader. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.